China Morning Snapshot – 21 April 2021

Major contracts for September delivery on Dalian Commodity Exchange settled the morning session in the red, plunging three digits from the previous session.

Details on the spot and futures prices are shown in the following table:

In the previous trading day, total PP and PE stocks in the local market digested 10,000 tons to approximately 870,000 tons as of 21 April 2021.

The large reductions on Dalian Commodity Exchange push spot buyers further to the sideline even at lower PP and PE prices. Traders struggle to attract buying interest, raising concerns that pre-holiday replenishment activities would be weak.

“There are no supports for the futures market to firm up strongly because the government is tightening credit control. Buyers are now just waiting for additional price cuts, not interested in making immediate purchases,” a market source said.